Tornado Cash-Linked Wallet Sells $8.2M in HYPE Tokens

TLDR:

• Tornado Cash entity offloads $8.2M HYPE through two wallets at average prices between $23.97 and $24.23
• The entity still controls $73M in HYPE tokens with 1.3M tokens unstaking across five tranches by Jan 19
• Coordinated spot sales pushed Hyperliquid market to negative $3.4M taker delta during Monday execution
• Historical patterns show entity liquidates all tokens within 24 hours following each unstaking completion

An entity directly funded through Tornado Cash has accelerated its exit from HYPE token positions. The wallet sold $8.2 million worth of tokens on Monday through coordinated market sells.

Qwantify identified the entity, which previously received 10,200 ETH from the crypto mixer. Another $2.9 million remains in spot holdings.

Coordinated Sales Push Market Into Negative Delta

Two linked addresses executed the sales within hours of each other. The first wallet moved $5.36 million at an average price of $24.23 per token. 

The second address sold $2.91 million at $23.97 per token. Both transactions hit Hyperliquid’s spot market hard.

The selling pressure created a peak delta of negative $3.4 million in taker sells. Market depth absorbed the impact, but prices slipped during execution. 

Moreover, the entity chose spot markets over derivatives for the liquidation. This approach maximized immediate liquidity while minimizing slippage exposure.

Trading data from Qwantify shows the entity still controls roughly 3 million HYPE tokens. Current valuations place this holding at approximately $73 million. 

The position represents one of the largest trackable wallets tied to mixer-sourced funds. Market participants are watching closely for additional selling activity.

Unstaking Schedule Points to More Selling Pressure

A significant portion of the remaining position is locked in staking contracts. 

Around 1.3 million tokens are currently unstaking across five separate tranches. The schedule runs through January 19, with releases spread over several days.

The first batch of 238,948 tokens unlocks on January 13. Two additional releases follow on January 15, totaling 592,475 tokens combined. 

Another 247,279 tokens become liquid on January 16. The final tranche of 242,462 tokens completes the schedule on January 19.

Past behavior suggests the entity will sell immediately after each unlock. Previous unstaking events resulted in full liquidation within 24 hours. The pattern has remained consistent across multiple cycles. 

Market makers are preparing for increased volatility during the release windows.

The entity originally accumulated its HYPE position using funds from Tornado Cash. Blockchain analysis tracked 10,200 ETH flowing through the mixer before conversion. 

The connection raises questions about the source of the original capital. Regulatory scrutiny of mixer-linked activity has intensified recently.

Hyperliquid’s native token has faced persistent selling pressure from large holders. The platform’s trading volume remains strong despite the liquidations. 

HYPE token economics include staking rewards that encourage long-term holding. This entity’s behavior runs counter to typical market participant strategies.

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